Mobile phones news: what UK phone contract customers need to know

A phone contract combines two things: the handset, which you pay off over the term, and the airtime plan for your calls, texts and data. Knowing which part you are paying for, and for how long, is the key to getting a fair deal. Every new phone you buy is unlocked Since December 2021, Ofcom rules have banned UK mobile companies from selling locked handsets. Any phone you buy from a network today should work with a SIM from any other provider. That matters when your contract ends: you can keep the phone and move to a cheaper SIM only plan without paying an unlocking fee. Price rises must be stated up front Since January 2025, new mobile contracts cannot include price rises linked to inflation. If a provider plans to increase your monthly price during the contract, it must tell you the exact amount in pounds and pence before you sign. On a 24 or 36 month handset deal those rises add up, so include them when you work out the total cost. Work out the total cost, not the monthly figure A low monthly price can hide a large upfront payment, and a free handset can come with a costly airtime plan. A simple test is to multiply the monthly price by the number of months, add any upfront cost and any stated rises, then compare that total with buying the phone outright and pairing it with a SIM only deal. For many people, especially those who keep a phone for three years or more, buying outright and choosing SIM only is cheaper. Some networks now split the handset and airtime into two agreements. This can let you change your airtime plan more freely, but the handset part usually still has to be paid off in full if you leave early, so read both agreements. Upgrading and switching When your contract is near its end, your provider must tell you when it finishes, what you will pay afterwards and its best available tariffs. If you keep paying the same amount after the handset is paid off, you are paying for a phone you already own. To switch network and keep your number, text PAC to 65075. Your current provider must reply within a minute with your switching code and any early exit charges. Give the code to your new provider and the switch completes within one working day. Before you choose a phone deal, check: 1. The total cost over the whole contract, including any upfront payment and stated price rises. 2. Whether the data allowance matches what you use now. 3. The contract length, and how long you usually keep a phone. 4. Network coverage at home and work, using each network's coverage checker. 5. What happens at the end of the term, so you can move to SIM only promptly.